Volvo, the world’s second largest truck maker behind Daimler, reported operating profits down to SEK2.9bn (US$433m) from SEK5.8bn a year ago as third-quarter orders fell 25%. The company, which makes trucks under the Volvo, Renault, Mack, Eicher and UD Trucks brands, said it expects no growth in either Europe or the US next year.

"In the short term, we have a tough quarter ahead of us to manage the consequences of the slow demand in the third quarter," said CEO Olof Persson.

The group is reorganising its business to improve profitability and is about to launch a new Volvo truck. It is also reorganising its dealer network in Europe, the Middle East and Africa.

Meanwhile, national rival Scania, owned by Volkswagen, reported that its operating profit for the quarter fell to SEK1.88bn (US$286m) from SEK3bn a year ago. The company said that demand in its main European market had not seen the normal autumn hike and remained weak.